A43/100FDD 2026
Mighty — Litigation & Risk
Automotive - Repair & Service · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
43 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
4
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Georgia
State whose law governs disputes — relevant if you're not based there
What drove the 43/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in Item 19 — cannot assess actual profitability despite $2.28M average revenue
- 02MINORAnemic unit growth of 3.3% YoY suggests market saturation or franchisee dissatisfaction
- 03MINORHigh royalty structure (5% + 8.3% on product purchases) creates dual revenue drain totaling ~13% of gross
- 04MEDInitial investment range ($248K–$570K) is substantial with no disclosed net income benchmarks for ROI validation
- 05MEDOnly 93 units system-wide indicates limited brand recognition and support infrastructure
- 06MED10-year term locks franchisees into commitment with minimal disclosed exit data
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.